The Self-Proclaimed “Most Progressive Government in History” Helps Former King, Juan Carlos I, Flee Spain Over Corruption and Money Laundering Allegations

On Monday, the Spanish Royal House confirmed what many already knew: former King Juan Carlos I had fled Spain following allegations of crimes of corruption and money laundering that have harmed the reputation of the monarchy including his son, King Felipe VI. According to the Spanish media, Juan Carlos is currently staying in a luxury hotel in Abu Dhabi, United Arab Emirates.

He is currently under investigation by the Spanish Supreme Court for his role in a deal in which a Spanish consortium landed a €6.7 billion contract to build a high-speed rail line between the Saudi cities of Medina and Mecca.

Swiss prosecutors are also investigating a $100 million bank account held by the monarch in the country. According to the investigations, Juan Carlos allegedly received a “donation” of $100 million from the king of Saudi Arabia that he put in an offshore account in 2008. A few years later, he allegedly “gifted” 65 of those millions from that account to his ex-lover Corinna Larsen.

The former king lost his immunity in June 2014 following his abdication, meaning he can be tried in Spain, though there are suspicions the Spanish Supreme Court, a body never reformed during the so-called “transition,” could favor him.

The self-proclaimed “most progressive government in history” officially said it “respected” the decision of the King Emeritus to leave Spain. The state-owned public broadcaster RTVE revealed that the government had been negotiating the self-imposed exile of the monarch with the Royal House over a period of weeks.

Podemos party said that they did not know anything about the negotiations, even though they are a part of the government. Giving them the benefit of the doubt, Podemos should have quit the coalition immediately. Instead, its leader, Pablo Iglesias, called for people to understand that PSOE and Podemos have different views of the monarchy and ruled out any risk of rupture of the coalition government.

What Podemos seems to forget is that they are co-responsible for any action taken by the government — they form part of it. The reality is that their government allegedly helped Juan Carlos flee the country in the midst of serious investigations for alleged corruption and money laundering — this is unacceptable.

Sooner or later, an international independent investigation should take place into how Juan Carlos fled the country. Many clarifications are still needed:

– Did he flee the country with an official plane?

– Does he still have an official escort?

– Has the government provided him any financial assistance?

– What government/s are giving him sanctuary?

– Who allowed him to go?

– What are the legal aspects of this?

– Did the government do anything illegal in negotiating his exit while he is being investigated?

– etc.

Whether this investigation will take place in the future is still unknown, but this case has already shown that the so-called “most progressive government in history,” is not so very progressive and is actually contributing to the shoring up of the 78 regime.

Newspaper El Confidencial Reveals the Existence of a Secret Document that Implicates Spain King’s Emeritus Juan Carlos I with the Management of an Instrumental Company to Hide €64.8 Million from Saudi Arabia

On Tuesday, newspaper El Confidencial announced that it had access to a private document signed by Spain’s King’s emeritus, Juan Carlos I, which implicates him in the management of an “offshore” structure used to “hide” €64.8 million euros from Saudi Arabia. In the three documents, Juan Carlos I appears as the first beneficiary of the funds of the Panamanian society, the Lucum Foundation. His son and current King appears as second beneficiary.

The documents show that the Lucum Foundation was created in Panama on July 31, 2008, by a Swiss financial manager, Arturo Fasana, and the lawyer Dante Canonica. Fasana became the president, and Canonica secretary.

The Lucum Foundation was created to act as a front for an account in Switzerland at the Mirabaud bank that received “a donation of €64.8 million made by the King of Saudi Arabia to the King of Spain.”

On March 10, 2011, the Swiss lawyer and Arturo Fasana established the internal regulations by which it would be governed. The new statutes nullified “any previous regime” of the company and appointed Juan Carlos I, King of Spain (Juan Carlos Alfonso Víctor María de Borbón y Borbón) as true owner of the foundation, born on January 5, 1938 in Rome, Italy, meaning that the €64.8 million donation by Saudi Arabia was now property of the Spanish monarch, according to the secret documents. The monarch enjoyed full rights to “freely dispose of the assets of the foundation during his lifetime without any limitation.”

The documents also reveal that if Juan Carlos I died, the money would be under the control of the “second beneficiary,” the current King Felipe VI, “Prince Felipe of Bourbon and Greece, Prince of Asturias, born on January 30, 1968 in Madrid.”

“Following the death of the first beneficiary, the second beneficiary will have the right to dispose of all the assets of the foundation, without any limitation,” the document states.

The conditions for accessing the money
There were some conditions required for Spain’s King Felipe V to access the money from the foundation. According to the documents, the current head of state had to comply the stipulations in his father’s will that the funds that remained after his death be used to “guarantee the maintenance of all members of the Spanish royal family, in particular, from SM Queen Sofía of Spain, to S.A.R. the Infanta Elena de Borbón y Grecia, Duchess of Lugo, and her children born or to be born, of S.A.R. the Infanta Cristina de Borbón y Grecia, Duchess of Palma of Mallorca, and her children born or to be born.”

In other words, in practice, the entire royal family and even possible new members, such as future children of the infantas, appeared as beneficiaries of the account in Switzerland.

Dissolution in 2012
The foundation was dissolved in September 2012. By then, the King Emeritus had only spent a small part of the €64.8 million ($100 million at the time) that he had received from Saudi Arabia as an alleged donation. The monarch transferred the remaining money to his then lover, Corinna Larsen, and closed the Panamanian structure.